Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Endicott Interconnect Technologies Seeks Bankruptcy Protection
Author: Joel R. Glucksman
Date: August 2, 2013
Key Contacts
Back
Endicott Interconnect Technologies has filed for bankruptcy protection with the U.S. Bankruptcy Court in Utica, and says that layoffs may quickly follow.
The company, which was recently spun off from IBM in 2002 in the hopes of saving thousands of jobs, announced its plans to file for Chapter 11 protection and sell its assets to meet its creditor obligations. In its court filing, the company disclosed that it’s carrying $16.09 million in secured debt and $67.3 million in unsecured debt, according to Dow Jones Newswires. In addition, the company owes $4.49 million in rent to its landlord. Endicott, which produces microelectronics, listed between $10 and $50 million in assets.
The company cited fierce competition from foreign competitors and federal budget cuts as the causes of its financial issues. Endicott previously provided circuit boards to several U.S. companies, including IBM, Cisco Systems, and the Department of Defense, but it noted that the industry is largely moving to China. Endicott also noted that it has faced falling revenue since roughly 2009. During this period, it has been trying to overcome its financial struggles through several methods, including debt refinancing and new capital contributions. Three of the four company founders have cut their ties with the company, and remaining owner Jim Matthews Jr. stepped down as Endicott’s chief executive.
Endicott said it plans to continue its operations through the bankruptcy process, but discussed the possibility of laying off a percentage of its 600 employees. The company – which employed 1,100 workers in November 2012 – has already made significant cuts and limited its operational expenses, but the court issued an interim motion mandating the Endicott continue to pay its employees’ health care and benefits, according to Fox WICZ.
The company noted that it is currently in private negotiations with a potential purchaser that would serve as a stalking horse bidder during the proposed bankruptcy auction.
- Bankruptcy Protection
- Chapter 11
- Chapter 11 Bankruptcy
- Chapter 11 Bankruptcy Protection
- Filing Bankruptcy
- US Bankruptcy Court
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
SPACs Are Back, What You Need to Know
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.